Environmental and Social Sustainability Report
Environmental and social sustainability mission statement
ACLEDA Bank is committed to achieving strong, sustainable financial returns, while respecting the environment and community within which we live. We subscribe to the concept of triple bottom line ('people, planet, profit') reporting and are developing indicators for measuring and reporting on our performance and impacts on the society and the environment and to implement a reporting structure based on the guidelines of the Global Reporting Initiative.
The key elements of ACLEDA Bank's Environmental and social sustainability mission are:
- To provide a framework of guidelines within which ACLEDA Bank can operate in a sustainable manner so that our impact on the environment, society and the community in which we operate is managed in a responsible way.
- To continue to introduce energy efficient systems into our buildings and to manage sensibly our energy requirements wherever we operate.
- To honour the society in which we live and actively work to promote an inclusive culture embracing not just shareholders and staff, customers, and business partners but respect for the individual within our community.
- To recognise that supporting the community is not just morally sound but good for business as well — our 'good health' and prosperity are mutually interdependent.
Environment
ACLEDA Bank fully subscribes to international conventions which prohibit the provision of credit to, or otherwise support, any activities which might harm the environment, be morally repugnant or jeopardise human rights. In particular the bank has in place policies which forbid involvement with exploitative forms of forced or child labour, trade in weapons and munitions, gambling, casinos, brothels, regulated wildlife or wildlife products and production or trade in radioactive materials or significant volumes of hazardous chemicals.
The Bank employs two full time Environmental Officers who regularly undertake training and refresher courses to coordinate ACLEDA's environmental activities and monitor performance.
Environmental Performance Indicators
In order to establish baselines for the measurement of our efforts to reduce our environmental impact, in 2005 we introduced a tracking system for resource usage. The results are given under their respective headings below and will be used to benchmark our future performance.
Paper usage
In 2007, paper usage was cut by 8.41% while waste paper (recycled) rose by 12.50% per co-worker compared to 2006. This was mainly due to increased use of electronic data storage and the sending of information by e-mail and our internal intranet. Additionally all staff have been trained to use double side printing and to recycle single sided documents.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Materials | |||
| Paper in kg/FTE | 23.30 | 25.44 | 38.92 |
| Waste (recycled) | |||
| Waste paper in kg/FTE | 2.61 | 2.32 | 3.18 |
Energy consumption
Electricity consumption per co-worker increased by 45.24% in 2007 because of the increasing use of technology and the number of new offices connected to the grid (as opposed to relying on generators). This last point is reflected in a reduction in gasoline consumption per co-worker by 18.73% and diesel by 3.64% compared to 2006 assisted by the opening of new offices closer to our customers in the rural areas reducing the need for travel. Lubricant and Gas consumption were also cut in 2007 by 20.84% and 15.09% compared to 2006.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Energy | |||
| Electricity in kWh/FTE | 741.34 | 510.44 | 535.83 |
| Gasoline in l/FTE | 78.31 | 96.36 | 111.56 |
| Diesel in l/FTE | 44.00 | 45.66 | 40.43 |
| Lubricant in l/FTE | 3.19 | 4.03 | 4.54 |
| Gas in kg/FTE | 0.45 | 0.53 | 0.78 |
| Emission of CO2 (equivalents - in thousands of kg) | |||
| Electricity | 1,605 | 793 | 688 |
| Gasoline | 734 | 648 | 621 |
| Diesel | 476 | 354 | 259 |
The CO2 equivalents above refer to the Greenhouse Gas Protocol Calculation principles.
Means of reducing the per capita consumption of electricity will be a priority for 2008.
Water
Water consumption was cut by 9.77% in 2007 compared to 2006 because usage is monitored and water saving procedures are being implemented with storage and recycling of rain water, especially during the monsoon season, to reduce the off-take from the mains which rely on rivers, reservoirs and bores. An underground water storage and treatment tank is provided for in the new headquarters feeding directly off the roof and building.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Water | |||
| Water in m3/FTE | 24.02 | 26.62 | 30.29 |
Business Travel
In 2007, the total distance travelled by car rose by 0.73% whilst motorcycle use was reduced by 19.76%. The explanation for this is that i) the opening of more rural branches entails more travel between branches, and, ii) for safety and security reasons the bank is phasing down the use of motorcycles in favour of cars.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Business Travel | |||
| By car in km/FTE | 337.46 | 335.02 | - |
| By motorcycle in km/FTE | 3,479.21 | 4,336.23 | - |
Social Sustainability
ACLEDA Bank's corporate culture is built on respect for the society in which we operate and an inclusive perspective on our stakeholders embracing not just shareholders and staff, customers and business partners but the community at large. In addition to the environmental programs mentioned above the bank observes a policy of equality in all our dealings with the public in general and customers and staff alike. Above all, ACLEDA Bank has practiced from the very beginning 'zero tolerance' of corruption both internally and externally and transgressions are dealt with summarily.
The following are key principles in ACLEDA's corporate social responsibility policy:
Staff
- ACLEDA is an 'equal opportunity' employer. Apart from those jobs which involve a higher physical risk (e.g. guards and messengers) appointment to all positions at every level is based entirely on merit regardless of gender or physical disability.
- ACLEDA Bank aims to be the most progressive employer in Cambodia providing medical, pension and other benefits such as personal and housing loan schemes and an employee share ownership program for all staff who have completed probation. It provides comprehensive training both for new recruits as well as experienced staff and encourages those who wish to further develop themselves through external programs.
- A high level committee under the chairmanship of the Chairman of the Board has been specifically tasked with the responsibility of setting and monitoring the bank's moral and ethical standards and respect for human rights
- In consultation with its staff the bank has drawn up social policies covering i) Code of Conduct, ii) Human Resources Management, iii) Health & Safety, iv) External Relations, v) Freedom of Association and the Right to Collective Bargaining. These are now published on Lotus Notes so that every member of the staff has free (and paperless) access to the most up-to-date versions.
- Following from the above, the staff are represented by a self elected Staff Representative Committee, which excludes management, and a Staff Sports Committee, to promote healthy recreation and good fellowship. At its headquarters, the bank provides a clinic under the care of a full time doctor and a full time nurse. Occupational Health and Safety working practices are part of the training provided to all employees under the doctor's supervision. A Health and Safety Policy under the direct responsibility of the Senior Vice President & Head of Human Resources Division is in place which includes a policy for the support of our staff and their families with HIV/AIDS.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Employment | |||
| Number of staff | 4,401 | 3,028 | 2,484 |
| Male | 3,164 | 2,265 | 1,918 |
| Female | 1,237 | 763 | 566 |
| Number of staff (FTE) | 3,937 | 2,825 | 2,335 |
| Training and Education | |||
| Training — career development and refresher programs | 1,178 | 950 | 4,084 |
| Training of new recruits — induction program | 1,714 | 686 | 562 |
| Provide training to external students — local | 654 | 638 | 282 |
| Provide training to external students — international | 4 | 12 | 9 |
Community
ACLEDA recognises that playing our part as good citizens in the community in which we abide is vital to our mutual interests and prosperity. Major initiatives we are taking are:
- Developing and offering appropriate products and services carefully selected and developed for the particular needs of Cambodian society. In 2006 the bank launched a housing loan scheme, with interest rates fixed for up to 10 years to enable Cambodian people, especially in the lower wealth segment, to purchase their own homes.
- Expanding outreach: opening up banking services to new communities in new locations by expanding our network in the provinces and extending on-line banking services to mobilise savings. The expansion of our 24 hours a day/7 days a week ATM network to all provinces in 2008 will enable our customers to access their funds at their own convenience irrespective of the normal opening hours of the bank or national holidays.
- During 4th – 31st January, 2008, we conducted our annual survey on our micro, small and medium loan customers' living standards to test the impact of our credit services. This involved 2,100 accounts randomly selected from our loan customers of whom 1,451 were micro loans, 500 were small loans and 149 from medium loan clients, as a proportion of our total loan customers. The responses indicated that across all sectors approximately 89.2% considered that their wealth had increased as a result of credit provided by ACLEDA Bank, 7.4% did not detect any noticeable change either way while 3.4% had the perception that they were worse off than before.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Income Situation | |||
| Growth | 89.2% | 93.3% | 90.0% |
| Stability | 7.4% | 6.2% | 7.5% - 9.5% |
| Reduced | 3.4% | 0.5% | 1.1% - 2.3% |
Whilst these results show a disappointing decline from recent years, our analysis indicates that the economy is at least partly responsible with a sharp rise in inflation in the last quarter of 2007 and an estimated reduction of 1.2% in GDP growth. Nevertheless, it is a matter of real concern to a bank like ours and further investigation will be undertaken in 2008 to obtain more specific information as to the underlying causes.
The survey also reveals that whilst in 2006 14.52% of ACLEDA loan customers were below the poverty line, according to their income per capita by the end of 2007, this had fallen to 7.79%. We believe this is an indication that the loans ACLEDA Bank provides to its customers not only helps to promote sustainable family business, but it also helps to improve living standards of the customers in urban and rural areas, as well as contributes to reduce poverty.
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Income per capita under poverty line * | 7.8% | 14.5% | - |
- Incorporated into our policies are strictures against overselling or encouraging customers to over commit themselves or buy inappropriate products or services. As a matter of principle, ACLEDA does not impose mandatory savings requirements on its customers.
- Transparency and 'truth in advertising' are strictly enforced when developing promoting and selling our products and services and full and detailed information is provided through brochures, our website and other promotional material.
- ACLEDA practices equality in its lending irrespective of gender or race: 59% of our borrowing customers are female.
- Customer confidentiality is inculcated in all our staff during induction training and transgressions are treated as a serious offence.
- Recognising the particular problem of disability in Cambodia, ACLEDA is taking into account the special needs of the disabled when constructing new, or renovating old, offices.
- As a commercial organisation ACLEDA does not receive subsidies but may on occasion, and where appropriate, receive financial support to provide non-commercial services such as workshops for external trainees.
- ACLEDA does not ally itself to any particular political parties or creeds but seeks to cooperate and work in harmony with the elected government of the day. To this end the bank regularly participates in meetings with senior officials through industry associations, business forums, chambers of commerce and other group activities. Individual meetings with officials are conducted with transparency and important matters are minuted. ACLEDA has strict rules governing 'undue entertainment' or other activities which might be open to question on the grounds of probity, including the provision of banking services at non-commercial rates ('policy lending').
- To assist the development of microfinance ACLEDA provided 654 internships for local students and 4 for international students from England, Japan, Russia, and France.
